Credit and Market Risk Information Disclosure on Corporate Market Value of Listed Companies in the Financial Sector of Nigeria

The study examined the relationship between credit and market risk information disclosure and the corporate market value of listed companies in Nigeria's financial sector. Using a Generalized Method of Moments (GMM) approach, the analysis covers a sample of 540 firm-year observations from 2015 to 2024. The results reveal a significant negative relationship between credit risk disclosure and firm market value, while market risk disclosure has a positive effect on corporate market value. The study highlights the critical role of comprehensive risk information disclosure in influencing how risk information is perceived by the market. Effective risk disclosure practices provide investors with transparency that can either enhance or diminish firm valuation depending on the nature of risk being communicated. Based on the findings, the study recommends that firms adopt balanced risk communication strategies, enhance the quality of market risk disclosures, and implement contextualized credit risk reporting frameworks. The results have important implications for policymakers, corporate governance practitioners, and investors, emphasizing the need for robust and transparent risk disclosure frameworks within the financial sector